Car giant Daewoo is repossessing the Mayor of Worthing's free car - just months after she was urged to give it back to them.

Now the borough council has decided to fork out almost £400 a month on a replacement while it ponders what to do.

The move follows a decision by the authority to increase council tax by 10.3 per cent - four times the inflation rate.

The Daewoo Leganza was provided free when the Korean car firm had a factory in Worthing at Lyons Farm.

But there was criticism of the council and former mayor Ann Lynn when Daewoo pulled out of the town with the loss of hundreds of jobs.

Despite pressure, the council declined to hand the luxury car back.

But now the decision has been made for it, after cash-strapped Daewoo withdrew sponsorship.

Peter Collington, head of corporate policy and executive services, said Daewoo had offered to sell the Leganza to the council at a reduced price.

The council had asked how much but felt the asking price was "rather high", even for a vehicle in A1 condition with a low mileage.

Mr Collington said Daewoo wanted the Leganza back by March 8. So he suggested a car should be hired while other options were investigated.

The £395-a-month deal would last three months from March 8 while councillors considered what to do next for civic transport.

Pavilion Car Rentals, based in Pavilion Road, Worthing, would provide a white executive Volvo 940 saloon for Mayor Valerie Sutton and her successor, who takes over in May.

The firm already has the mayor's chauffeur and mace-bearing contract, which is also up for renewal when councillors meet on Thursday.

Mr Collington said said the Volvo had been hired for mayoral use previously and the quoted price included maintenance, garaging and the road-fund licence.

The council has £2,280 in the budget to spend on mayoral transport.

Councillor leader Brian Lynn said: "The mayor has to have a car and this is a temporary measure while we examine other possibilities.

"We are hoping somebody else might be good enough to sponsor a car for the mayor.

I never quite know why the mayoral car should be such a controversial subject in Worthing. Other towns have decent cars for their mayors.

"We are not looking for a Rolls-Royce. It just needs something that preserves the mayor's dignity. You cannot do the job without a reasonable sort of car. Perhaps John Prescott could lend us one of his Jags."

Meanwhile, residents were coming to terms with the new council tax demands, which mean an average Band D taxpayer must pay £937.26 next year, compared to the present £849.51.